SUPREME COURT VERDICT: POS CHARGES FALL BY 90%

As the problem of scarcity of the Naira persists, point-of-sale (PoS) operators continue to charge exorbitant fees on cash transactions, prompting the intervention of the Central Bank of Nigeria, the regulatory authority over all financial service providers in the country.

The business, which started in Nigeria in 2013 has seen the numbers of operators increase drastically due to the high unemployment rate, and people saw it as an opportunity to earn extra income.

How to start a PoS business became a popular topic when the cash scarcity issue in the country made it seem like a lucrative enterprise, with some operators charging up to 30% on all cash transactions instead of the usual below-5% charges.

Recall that on Valentine's Day this year, the 14th of February, CBN, through its governor, Mr. Godwin Emefiele, vowed to prosecute any PoS operator found to be charging more than the stipulated amount, but as there is no other alternative for getting access to cash, Nigerians still found themselves overpaying for PoS services.

The cash scarcity was due to the new CBN Naira design policy that rendered  the old 200, 500, and 1000 naira notes invalid legal tenders from February 16, 2023, and Nigerian banks are not supplied enough new notes to go around, which made banks reduced cash withdrawal over the counter to 5000 naira maximum and 10000 at the ATM's, 

At the end of February, the president of the Federal Republic of Nigeria, Mohammadu Buhari, ordered the old 200 Naira notes to be accepted nationwide until April 10th, but this did not solve the issue of scarcity, and the problem persisted.

On March 4, 2023, the supreme court of Nigeria ruled that the old 200, 500, and 1000 naira notes are to be accepted as legal tender and should coexist with the new ones until the end of the year. 

The news spiked a lot of enthusiasm and optimism as many people saw it as a solution to the cash scarcity problem and the end to the naira redesign saga. 

Many others remain skeptical. Mr. Dada, a market seller in Akure, Ondo State, says that people are waiting for CBN's official report or the president's address before they start accepting the old naira notes. Stating that this is not the first time the highest court has ruled similarly and that it was ignored until the president's own order was issued.

It remains to be seen if the orders will be enforced in the banking sector, which will crash the charges by PoS operators by 90%. Nigerians believe it will bring a huge relief to the already anxious population.